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of 1S/61 Waivada <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766-4048 <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: May 8, 2007 <br />RE: 1033 Letter for 91 Viking Drive <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />John Keis <br />Michael McGraw <br />ADMINISTRATOR <br />Joel R. Hanson <br />At the closing for the above reference property, the owner asked if we would issue him a <br />1033 letter that indicates our acquisition was done under the threat of eminent domain. <br />We have issued these letters in the past, although it has typically been a provision of our <br />purchase agreement. The 1033 letter gives the seller additional time to make a "like <br />kind" property exchange to avoid capital gain taxes. <br />I have attached a draft of the letter for your consideration as well as the correspondence <br />from the owner documenting that no one was displaced. (This is a key issue for us given <br />the fact that if we acquired under the threat of eminent domain, any tenant displaced as a <br />result may be eligible for relocation benefits.) <br />I have also reviewed this situation with Pat Sweeney and he revised my letter to the form <br />attached. It is a policy decision for the Council as to whether you are comfortable issuing <br />this letter. It would be helpful to the seller, but I made no commitment that we would do <br />so given the circumstances. (I did say I would present his request to you.) <br />